MoP issues guidelines for power procurement on FOO basis under SHAKTI policy

The MoP has released guidelines under Section 63 of the Electricity Act, 2003 for the procurement of power on a finance-own-operate basis. The objective of these guidelines is to facilitate the procurement of power by the nodal agency on a long-term and medium-term basis through transparent bidding to meet the power requirement of a group of states with coal linkage as per Para-B(v) of the SHAKTI Policy. The medium-term procurement of electricity will be for a period of up to seven years but exceeding one year, while the long-term procurement of electricity will be for a period of 12-15 years. According to these guidelines, the date of commencement of supply under the contract will not be less than 120 days for a medium-term contract, and not less than 1,460 days for a long-term contract.